Start by shifting to repo-linked rates, then seek the lowest rate being offered by lender
That apart, they expect the government's overall fiscal deficit to rise
Economic Affairs Secretary Tarun Bajaj says he is certain that a V-shaped economic recovery will take a year.
The Monetary Policy Committee (MPC), headed by RBI Governor, is scheduled to meet for three days beginning August 4
There is lots of monetary space as interest rates here are still significantly positive unlike western Europe, where there is zero to negative rates, he said at the India Global Week 2020
Analysts want RBI to look at 'unconventional' monetary policy measures for a revival nudge
Falling rates to help; rise in group exposure limits will support large companies
Following this, the reverse repo rate, or the rate at which the banks perk extra liquidity with the RBI, was reduced to 3.35 per cent from 3.75 per cent - both at their historic lows.
Earlier today, the RBI slashed the repo rate by 40 basis points to 4 per cent and extended the loan repayment moratorium for another three months up to August 31
The RBI has extended moratorium period by another three months till August 31, 2020.
This has been done to stop lazy banking. Banks are being encouraged to lend instead of parking their resources with the RBI and earn risk-free interest income
Cloudy earnings outlook in the coming quarters is likely to play spoilsport
The timely and decisive action by the Reserve Bank of India (RBI) provides vital liquidity and ensures that credit lines remain open
The Union Bank CEO said that the RBI's package would help in sustaining business at a time when a 21-day nationwide lockdown to stop the spread of the COVID-19 virus
The move comes after the global central banks have been cutting rates to help shore up the economy amid coronavirus pandemic
Lowering rates at this time also carry the risk of affecting deposits, as banks will have to rework their deposit rates considering that the lending rates have already been affected.
If Guc Das announces a rate cut, it will be first inter-meeting rate reduction since the monetary policy committee was instituted in February 2016
Amid talk of a review of the flexible inflation targeting framework, it said the revised contracts will introduce growth and financial stability as co-objectives of monetary policy along with price st
RBI has the official mandate of keeping CPI inflation at 4 per cent, with a 2% band
It said a rate cut is unlikely to work in isolation as bank transmission of RBI's rate cut has been slow